Has the Government extended the 50% reduced pension minimum?
Yes. The Government has announced that it has extended the drawdown relief available to account based and term allocated pensions to 30 June 2011. The drawdown relief reduces the standard minimum pension payment amounts by 50%. The drawdown relief was introduced February 2009 during the global financial crisis to help retirees avoid having to sell assets at a loss to meet the minimum payment requirement. As sharemarkets are still recovering, the Government believes that extending the drawdown relief for a further year will help retirees to continue to recoup capital losses on their pension portfolios. The reduced minimum pension payment amount does not automatically apply to Perpetual WealthFocus or Perpetual Select Pension Plan accounts. To take advantage of the relief, you will need to complete and return the pension changes form in your pension pack. Alternatively you can write to us with your instructions.
